Companies that adopt a concentrated marketing strategy violate which of the following
old sayings?
a. “You can”t bake a pie without breaking some eggs.”
b. “Don”t count your chickens before they hatch.”
c. “Don”t put all your eggs in one basket.”
d. “The grass is always greener on the other side of the fence.”
e. “A rolling stone gathers no moss.”
Answer:
Joaquin didn’t buy a tablet computer when they first came out, but he did purchase one
a year after they were introduced to the market. He is very active in his church and local
arts council, and many of his friends asked him which brand to buy when they were
considering purchasing a tablet. Joaquin is best described as a(n):
a. innovator
b. early adopter
c. early majority
d. leading consumer
e. proactive
Answer:
A(n) ____ gathers its information from a single group of respondents by continuously
monitoring the advertising, promotion, and pricing they are exposed to and the things
they buy. This creates a huge database of marketing efforts and resultant consumer
behavior.
a. one-way mirror observation study
b. television meter investigation
c. laser scanner experiment
d. CLT interview
e. scanner-based research system
Answer:
All of the following are advantages associated with the use of Internet surveys
EXCEPT:
a. decreased costs
b. ability to contact hard-to-reach respondents
c. reduced measurement error
d. ability to get survey results much more rapidly
e. ability to personalize the survey
Answer:
Pocket-knife collector Sam Penley decided to open The Knife Depot, a store that sells
pocket knives and related paraphernalia. After 18 months in business, Sam has noticed
that most of his sales are to the same small group of customers (about 40 people) even
though he has records to show there are over 200 active pocket-knife collectors within a
50mile radius of his store. Sam’s retailing experience is supportive of the:
a. optimizer principle
b. min-max rule
c. majority fallacy
d. rule of demand
e. 80/20 principle
Answer:
After a need or want is recognized, a consumer may search for information about the
various alternatives available to satisfy it. This occurs during which part of the
consumer decision-making process?
a. Evaluation of alternatives
b. Information search
c. Cognitive dissonance
d. Consideration stage
e. Product identification
Answer:
Which of the following statements is NOT true with regard to trade-ins?
a. Flexible pricing and trade-ins often go hand in hand.
b. If a trade-in is involved, the consumer must negotiate two prices, one for the new
product and one for the existing product.
c. Research found that trade-in customers tend to care more about the trade-in value
they receive than the price they pay for the new product.
d. Car trade-in values have plummeted in recent years.
e. On average, customers who trade-in an automobile when purchasing a new one end
up paying more than customers who simply buy a new car from a dealer.
Answer:
The newest generation of shopping centers is the:
a. regional mall.
b. shopping business district.
c. lifestyle center.
d. franchised center.
e. strip mall.
Answer:
The Home Depot’s purchase of Hughes Supply Company allows it to better meet the
needs of its current business
customers. This is an example of product development.
a. True
b. False
Answer:
Apple recently updated its iPod Touch product, expanding its storage from 8 GB to 16
GB. Enlarging the iPod Touch’s storage capacity is an example of a:
a. product modification.
b. brand mix extension.
c. product diversification.
d. brand repositioning.
e. demographic modification.
Answer:
A potential disadvantage of multisegment targeting is _____, which occurs when sales
of a new product cut into sales of a firm’s existing products.
a. cannibalization
b. synergy
c. positioning
d. demarketing
e. inelastic demand
Answer:
Vera is designing a promotional strategy for a company that provides premium boarding
services for pampered animals. Her promotions should use personal information
sources and stress the tangible cues associated with the service.
a. True
b. False
Answer:
RugRatReaders
Greg Martin has developed his own line of children’s books. The books are written for
children ages 3 to 6 and are produced using cotton fiber as pages, rendering them
“nearly” indestructible. This unique feature makes Martin’s books superior to the
competition. His products are called RugRatReaders. Martin has decided to advertise
the books to his target market (women with children ages 3 to 6) via radio. He does not
have a formal advertising budget, but he will spend whatever money he has in the bank
after producing the books each month. His message will focus on the product and its
unique features. Martin has been having problems getting retailers to stock his new
product. It is Martin’s hope that consumers will go to their local bookstores and ask for
the RugRatReaders.
Refer to RugRatReaders. In all of Martin’s ads, he will emphasize the books’
indestructibility. This represents the product’s:
a. tactical advantage.
b. competitive advantage.
c. feedback.
d. promotional result.
e. objective strategy.
Answer:
Which of the following is an example of one of the six types of integration that are
sought by firms interested in providing top-level service to their customers?
a. Strategic integration
b. Hierarchical integration
c. Material and service supplier integration
d. Global integration
e. All of the above
Answer:
Mystery shoppers engage in a form of:
a. mall intercept study.
b. experiential study.
c. marketing audit.
d. observation research.
e. market audit.
Answer:
ChoiceHomes,Inc.
Choice Homes, Inc., based in Texas, built its reputation by building high-quality new
homes, often at prices less than “used” ones. Choice Homes used mass purchasing
power, innovative hightech communications among employees to coordinate the
building process, and other entrepreneurial strategies to hold costs down. Its homes are
primarily targeted at first-time homeowners-to-be in an effort to get people out of
apartments so they can experience the “American Dream” of home ownership for the
same price as rent. Choice Homes later developed the “Choice Classic” brand name for
higherend homes targeted at wealthier dualincome couples. The Choice Classic name
was designed to capitalize on the reputation of Choice Homes, especially for current
Choice home owners who are ready to “move up” to a larger home. Recently, Choice
Homes started a third line of homes called “Reflections,” which are expensive,
custom-designed homes located in exclusive, prestigious neighborhoods.
Refer to Choice Homes, Inc. In a recent survey, Choice Homes’ customers indicated
that they thought their homes were of high quality, made lots of referrals to friends, and
planned to buy a Choice Classic or Reflections home in the future. The customers’
reactions indicate that Choice Homes has achieved:
a. generic status.
b. private brand status.
c. brand equity.
d. superficial skills.
e. brand superiority.
Answer:
When a firm introduces a new product at a relatively low price because it hopes to
reach the mass market, it is following a ____ strategy. The low price is designed to
capture a large share of a substantial market and produce lower production costs.
a. penetration pricing
b. price-insensitive demand
c. price skimming
d. price elasticity
e. cost bundling
Answer:
Another name for evoked set is:
a. array
b. reminder assortment
c. induced memory
d. consideration set
e. awareness set
Answer:
A ____ is a determination of the customer’s specific needs and wants and the range of
options the customer has for satisfying them.
a. stimulus-response continuum
b. needs hierarchy
c. needs assessment
d. NASIC comparison
e. sales probability
Answer:
Which of the following is a potential disadvantage associated with an undifferentiated
strategy?
a. Large competitors may more effectively market to niche segment
b. Unimaginative product offerings
c. Segments too small
d. High costs
e. Loss of synergy
Answer:
Chinese don”t like sweet cookies, and Kraft’s Oreos were not selling well. Chinese
consumers also thought the package was too expensive. Kraft introduced packages
containing fewer Oreos at a reduced price and also created a “Chinese Oreo” consisting
of four layers of crispy wafer filled with vanilla and chocolate cream, coated in
chocolate. Which of the marketing mix strategies did Kraft use?
a. Countertrading
b. Product invention
c. Global market standardization
d. Product licensing
e. Product adaptation
Answer:
Copying machines, personal computers, and fax machines are typically classified as
_____ because they are not expensive, have short useful lives, and are frequently
purchased from local distributors.
a. accessory equipment
b. mobile equipment
c. component parts
d. processed materials
e. supplies
Answer:
International trade does not always involve cash. Sometimes companies accept all or
part of the payment for goods or services in the form of other goods or services. This is
known as:
a. export trading
b. crossdocking
c. exchange modification
d. domestic barter
e. countertrade
Answer:
______ advertising is designed to enhance a company’s image rather than promote a
particular product.
a. Publicity
b. Institutional
c. Pioneering
d. Selective
e. Image
Answer:
Emily’s nephew is on the autism spectrum, and she has read stories on the Internet
about how vaccines supposedly cause autism. Though Emily knows this theory has
been debunked and that vaccines are safe, she is surprised that she feels a bit worried
when she takes her own child into the pediatrician for her shots. Emily is glad her
pediatrician does not think her fears are silly and will answer all of her questions
without making her feel stupid for asking them. By which of the following components
of service quality is Emily most likely to rate her pediatrician?
a. Empathy
b. Assurance
c. Tangibles
d. Reliability
e. Responsiveness
Answer:
The nutrition label on a package is an example of persuasive labeling.
a. True
b. False
Answer:
The Patton Awning Company produces tents, tarps, awnings, and other canvas products.
The firm is in the first stage of creating its global business. This means that Patton
Awning Company:
a. operates in one country and sells to others.
b. has set up a foreign subsidiary.
c. operates an entire line of business in another country.
d. has top executives and core corporate functions in different countries.
e. operates in every country in the world.
Answer:
In order to combat U.S. corporations use of illegal payments and bribes in international
business dealings, Congress enacted:
a. the Future Corporation Protection Act (FCPA)
b. the Foreign Corrupt Practices Act (FCPA)
c. the Foreign Anti-Bribery Act (FABA)
d. the Corporations Against Foreign Corruptions Act (CAFCA)
e. Congress cannot pass laws regarding foreign business practices.
Answer:
Kent has gathered data concerning people’s preferences for traditional breakfast foods.
He has learned that 30 percent of the population prefer eggs in the morning, 50 percent
of the population prefer something sweet for breakfast like a doughnut, and an
overwhelming 86 percent prefer food that they can eat while they drive to work. What
method of analyzing the data has Kent used?
a. Cross-tabulation
b. Standard deviation
c. One-way frequency count
d. Single correlation
e. Linear regression
Answer:
The European Union accused South Korea of selling ships at a loss in an attempt to
push its European rivals out of the market. In other words, South Korea was accused of:
a. dumping.
b. illegal importing.
c. countertrading.
d. fiscal impropriety.
e. using an illegal cartel.
Answer:
A product information source that originates with marketers promoting the product is
referred to as a:
a. manipulative information source
b. primary information source
c. secondary information source
d. marketing-controlled information source
e. biased information source
Answer:
EtruscanRailingCompany
Etruscan Railing Company makes railing that is used in sports arenas, nursing home
corridors, queue houses at amusement parks, and many other places that are not as
obvious. Its railing is molded into bicycle racks. You may also see city governments
using the railing to make walkways over ravines and creek banks safer for pedestrian
traffic. Hospitals also use the railing in their physical therapy departments, to keep the
lines straight in the hospital cafeteria, and to prevent patients from falling out of
hospital beds.
Refer to Etruscan Railing Company. Etruscan has experienced a strong increase in
railing sales as a result of the growth of college football. This increase in the demand
for railings as a result of the demand for new football stadiums is called _____ demand.
a. joint.
b. derived.
c. inelastic.
d. fluctuating.
e. elastic.
Answer: